Ukraine and Canada Agree on Joint Production of Drones and Anti-Drone Equipment

The defense ministers of Ukraine and Canada have signed an agreement on the joint production of defense products.

The Canadian government has already allocated initial funding.

Ukrainian Defense Minister Denys Shmyhal said the agreement was aimed at deepening bilateral defense-industrial cooperation and expanding or creating new production facilities in both Ukraine and Canada.

“It is important that today’s agreements will not only simplify the creation of Ukrainian companies in Canada and promote technology exchange, but will also help supply the Armed Forces of Ukraine with modern weapons and equipment in the long term. This will significantly strengthen our resilience and ability to counter the Russian threat,” he said.

Canadian funding

Alongside the signing, the Canadian government announced C$220 million (about $160 million) in funding for drones, anti-drone systems and electronic warfare equipment.

The funds will also support investments in joint ventures between Ukrainian and Canadian defense industries, in line with the letter of intent on joint production.
This assistance is part of the C$1.5 billion military aid package announced by Ottawa in June 2025.

At the end of June, Canadian Defense Minister David McGuinty said Canada had been considering the possibility of joint weapons and equipment production with Ukraine.

“The Ministry of Defense and the Canadian Armed Forces are actively considering this,” McGinty said in response to a question about Canadian companies’ potential role in joint production.

He noted that Ukraine has made significant progress in drone technology, “which we are looking at carefully.”

According to McGinty, options under review included the so-called “Danish model,” in which equipment would be produced in Ukraine at Canadian expense, as well as opening joint defense enterprises in both countries.

“This could bring significant benefits to Canadian industry, which is why we are studying which of the approaches is the best,” he said at the time.